sometimes you're going to make a miss a shot, but i'm saying if you disgrail with me, challenge he, but challenge me on the merit of the idea. >> find out how kevin johnson, now sacramento's first african- american mayor is making the difference in in his own home town. and it's not just johnson making an impact, we'll profile several former athletes now making the political rounds. and you're the biggest hockey fan on the planet, right? but where do you draw the line between the casual fan and the hockey obsessed?

net impact starts right now. and hello, everyone, and welcome to this edition of net impact, i'm art finell. you know, there's a long list of former professional athletes who later segued into a life of politics, guys like bill bradry, j.c. watts, steve largent, just to name a few. they've all made valuable contributions in the political arena for sure, but you canned a kevin johnson's name to that list. he was called k.j. on the court, and he was a huck of a point bard for the phoenix suns, made the all stars several times, but now he's called his honor, as the first african-american mayor of his hometown sacramento. we look at a day in the life of kevin johnson. >> reporter: it's 5:00 a.m., the city sleeps, but kevin

johnson has traded in his comfortable bed for a pair of running shoes. moonlit pavement. and the biggest day of his young political career lies before him. >> for me, it's about staying in good shape, mental, physical, spiritual, and running allows that happen. when you get up at 4:30 to run, there's no distraction, it's quiet out. it allow use tow think and reflect, and a chance to certainly get the right perspective and early in the morning allows that really take place, because once the hustle and butle of the regular day starts, it's very, very difficult to have a private moment and get a peace of mind. >> reporter: with his workout behind him, the mayor begins what promises to be a very long day. even a quick car ride to a local television station is an opportunity to conduct business. >> this is kevin johnson

calling, the mayor of sacramento, is the congresswoman ready? yes, ma'am, how are you doing this morning? i'm doing very well. yes, ma'am, i just finished a run and a workout. yes, indeed. >> on my desk, there's a gavel that my brother gave me on christmas day of december of 2007. i announced my canadacy on march of 2008, so my brother was the first one to kind of somehow have this vision that i should run for mayor of the city of sacramento. the next thing i know, i'm throwing my hat in the ring. >> reporter: the ride to sacramento's state of the city address is a familiar one. >> when i was growing up, everything that impacted me was in this two-mile radius.

i do remember this growing up, that in my neighborhood, which was a poor are in city community, didn't have sidewalks. now as mayor, i know how to make sure to there's no equality across neighborhoods, not just the nice neighborhoods get things that others don't. >> reporter: he may have the home court advantage, but johnson is no longer in his comfort zone. in a matter of hours, the eyes of his hometown will be on him. the clock is ticking. >> good morning. >> how are you? first and foremost, i would like to report on the state of our city the economic crisis comes opportunity. can you go back? isn't this letter size here different than what we just had? >> yeah, that's the way it came to me. >> this will also help us in

our goal to decrease crime and improve public safety. in terms of education, it's the first time we've brought together superintendents of the city to discuss the challenges that we are facing in our city. people's livelihoods hang in the balance. i can't read and talk. i'm not good at both. that's my weakness when i try to read and do that. >> ladies and gentlemen, join me in giving a rock and roll welcome for the 55th mayor of the city of sacramento, mr. kevin johnson. >> i'm not asking you to always follow everything i say. as i said earlier, sometimes i'm gonna be wrong, sometimes i'm gonna miss a shot, but what i am asking you is, if you disagree with me, challenge me, but challenge me on the merit

of the idea, not because it flies in the face of the way things have been done in the past. our attitude and our perspective is going to to be the difference on how we navigate through all of these challenges. it is our ability to give back, to serve, especially for those who are less fortunate than ourselves. thank you very much for your time, and god bless each and every one of you. (applause) >> really a great job. >> thank you. >> at some point did your heart take over that speech? >> yeah, you know, early on, i was trying to just get my thank yous and my formalities out of the way, but i started off by saying i'm living a dream. i love this. there is nothing else i would rather do, and somewhere through the speech, you know, it just became the kid from sacramento talking to people in his city and saying, look, i want to do all i can, and i need your help and we can collectively get through this, but we're going to need everybody to be on the same

page. and you did great. >> hey, thanks. we also wants to actage the special guests who are with us this evening. mayor kevin johnson, the mayor of the city of sacramento. >> i want you to put your hands together for mr. jim brown. (applause) >> governor arnold schwarzenegger! >> (applause) >> thank you very much karen for the wonderful introduction. also thank you for inviting me to be part of this great operation here. tonight it's about honoring those who break down the barriers and to promote social justice. tonight's heros have excelled in all walks of life.

i think that each and every one of those honorees are also, at the same time, a great inspiration to millions and millions of people. and i will say especially for the young people, because that's the important thing. they need this extra push to know that the american dream is also there for them,. that they can reach whatever dream that they have, and so this is why we have inspired them to show them that there's more out there than just gangs and violence and drugs and alcohol and those things. there are positive alternatives. >> i have felt very strongly that athletes have a responsibility, whether they like it or not, or whether we like it or not, to be role models. those who had the biggest impact on us as kids growing up are the people we came in contact with every day. >> i would like to thank the governor for his remarks, and speaker bass for hernandez, and

the legislative black caucus for being here today. i do want to poke fun at a couple of people really quickly. one of our honorees joe morgan. joe, raise your hand. and i saw joe morgan few minutes ago and said how are you doing? and he said i want you to know that even though i don't live in sacramento, i voted for you, so thanks joe. (laughter) >> i get a chance to spend a little time with our governor here, and i don't know if you know this, the governor has a little rhythm, got some dance moves. i think we might have to think about inducting him next year as an honor airy african- american. thank you very much. (laster and applause). >> reporter: a day of accomplishment here is concluded. but there is still time to reflect on the magnitude of what has happen, and what is

still to come. >> even in a day among days, that has to be a big highlight. >> like i said, i'm living a dream. effect i get to do is somehow beyond my wildest expectations. jim brown. i couldn't even mess with him, that's too emotional. >> at some point, you realize there's not enough people that are doing good work in elected office, and i shouldn't stand on the sidelines and complain. if not now than when the? all of those things led me to saying i need to get in the ring and do my part to not just make sure the neighborhood i grew up in, but the city i'm so proud of, reaches its potential. >> thanks, matt for that report. by the way, you saw govern toker schwarzenegger featured in that piece, as well. but this generation may not even realize that in 1970, at the age of 23, schwarzenegger became the youngest person to be named mr. olympia. he would go on to win that

competition six straight years. of course schwarzenegger was elected governor of california in 2003. you may also remember former nfl quarterback heath schuller who is now making his rounds in the u.s. capital. he was the third overall pack in the 1994 draft by the washington redskins. he played just three short seasons before finally retiring in 1997 because of a foot injury. well, he is now congressman schuller, and he represents north carolina's 11th district. still to come on net impact, one athlete recall as vivid memories of war as a youngster in war-torn bosnia. >> they kidnapped us and took to us where my dad was staying, which, and we just kind of hid there for a couple of months. >> now that same athlete is living his dreams out on the soccer field right here in the united states. and the husband saving his

wife's life, but they say the philadelphia phillies played a major role in her recovery. we'll tell you how that happened, and you'll hear her amazing story. you're watching net impact on

here is another tidbit for you. former president dwight eisenhower, gerald ford, and ron at reagan all reached the highest office in our land, but before they were president, they were each standout athletes in college. wow. now this. what a year it's been for this next athlete. his name is bofgio. the chicago fire welcomed the rookie mid-fielder to her roster, and being all to play in front of his own hometown has been. a a dream come true, especially when you consider that his journey began in another

country where his memories of death and destruction still remain a big part of him. josh mora has gee or geo's story. >> i spent a lot of time playing with my family, so that's really basically it, that i remember, is just playing around with my cousins, running in the wood, and that sort of thing. >> reporter: peaceful life. >> yeah, very nice, very peaceful. >> reporter: until he was 7 years old, he lived an idealic life in bosnia with his parents and older brother. his family owned land and had money, but wars a all around them. >> it's war, you see people dead. i lost my brother to, you know, yes, i lost my brother. yes, a lot of people dead, you can see it right there, bombed everything, you know, it's war. >> there are stores like they held up father, you know,

rained the mom and just kind of left the kids. >> reporter: they left behind their family, their money, their home, their lives. >> had worked in the office 17 and a half years, she worked in the office, too, and war come, and we lost everything. and how she say, we left august 20, '94. just take a couple of bags in car and we stop at the border. >> my dad paid off a soldier, or i think he gave him our car to let my dad come across, and he stayed with his niece, who was located in croatia. so my mom told me and my brother to fake that i had a ear ache, and my brother had an

eye problem. so when they let us come across, because, i mean, there was no way we could get across, you know. i remember they would read off names for like nurses to come take and you bring you in, and wire kind of in the middle of the line, they & they read our names off, and they wouldn't allow us -- you know, other people were in line, had been waiting there for days, you know, just like everyone else, and i remember the guards shooting, like, guns in the air, and they kind of ran away, and the guards came and grabbed me and my mom and my brother and took us across, and while we were there, a soldier who my dad paid off to, like -- he kidnapped us, and, like, took us to where my dad was staying, and we just kind of hid there for a couple of months, you know, and it was like we were, like, we had nothing. >> reporter: for a short time, germany accepted bosnian

refugees. >> it was pretty hard. there was a lot of racism going on. we were an easy target for a lot of the kids. we were all put together with nothing, you know. you know, you could tell the way we dressed and everything, we had nothing. and we were made fun of so much, i mean i was fighting every day after school. three years later, the german government ended its program for families who didn't have visas, so the husidics had a choice, go back to boss the kneia, or end up in the united states. they went to chicago. >> that's when i finally felt like you can enjoy life now, we've made it. you can relax now. you know, it's yours, so, you know, i always, like, wanted to have a house i could have friends over and stuff, and every day, like, since we had the house, i always have people over, there's not like one day where my mom is not cooking for everyone. but in bosnia, it's just like

that. you always have family over, friends over, you're grilling. >> reporter: and from there, life was good. boggio starred in soccer, and now he's getting plenty of playing time for the fire. >> i can't really describe like how you feel, like -- because you, like, you remember, when you go back, it all comes back to you like everything happened yesterday, and its just like, you know, it's -- you try to make it happy where you get to see your family again, but as soon as like that goes away, like, wow, like i left all of this behind. what if i didn't have this sort of future? >> reporter: and so you can understand when the practices get long and the guys get sweaty and the work seems difficult that boggio doesn't seem to find site hard. he is living a life that years ago simply didn't eve exist for him, not even in his dreams.

>> when we played columbus, it was like a pretty packed house, and starting in that game, i it was like the best feeling work like such a big feeling of accomplishment, like everything my family and i have been through. >> you watch him after 15 years behind, i will show you he was involved, unbelievable. not just one, almost two guys, you know, oh, feel good. >> it has been a pretty good year for the chicago fire, they may have had in the playoffs, and the team is hoping for bigger things in their future. now let's talk baseball. what a season it was for the philadelphia phillies. one of the things that always feeds the philadelphia phillies is their fan support, which is always off the chart. by the way, they had more than 50 sellouts at sipsens bank park this past season, but this next story takes fan support you might say to a whole new

level. as sportsnet philadelphia reports, one couple's love of the phillies truly became a matter of life and death. >> reporter: don has seen hundreds of phillies games, but it's the one he didn't see that he'll always remember. don and his wife sandy had tickets to see the phillies play the angels last june in what turned out to be a forgettable 7-1 loss. the events that drains spired that night, however, they will never forget. >> i went upstairs to get ready, and i got a splitting headache like i've never had before. i mean, this was the most intense pain i've ever had. he came upstairs and found me rolled into a fetal position on our bed, and all he could decipher from what i was saying was bad pain, hurts bad. >> i was just totally -- you know, company can see your life just flash in front of you. i took her into the hospital, they took her in for a cat scan, the doctor came out and said we have a helicopter dispatched from the university of pennsylvania coming down to

pick her up, and this was, like, three hours after this first when i came home that this happened. it's, like, what is going on here? the skull is full of blood, it's a bleed, we have to get her up there immediately. she came in between annal and a 9 and 10 is fatal, and usually they don't make the flight, but they said we have her stabilized, next morning they twenty in and operated on her, and long, long road to recovery, and 50% of then people don't make this, they told me. >> reporter: if he was not at home to find his wife, it she likely would have not survived what turned out for a brain aneurysm. with that, they believe the phillies saved her life. >> don came home from work three hours early. the only time don comes home from work is when he's going to a phillies game. otherwiseny stays the rig rather time >> if it wasn't for me going to watch the phillies game that night, she would. >> reporter: be here for this interview. >> reporter: a speech and language therapist by trade,

she's had to deal with the harsh irony of struggling with basic communication. under normal circumstances, degrees may have completely ravaged their lives, but a phillies title drive proved to have therapeutic powers. >> she followed the phillies games through the playoffs, light late in the year, and he was able in the hospital bed to to watch that, the world series. her sister came down and watched her for game four, which i winter up to see, and she weighed in the hospital bed in our house, and she watched the whole game there, and it just played out that the phillies won that world series that year, and it was almost like, you know, somebody was watching up above there. >> one of the things that they would do is every day they would come in asking what day it was, you know, what's the next holiday, things like that, to see if my brain was functioning. so when the phillies were there in the playoffs, they would come in every day and ask me, okay, who won last night? so i would have to remember who won, what the score of the game

was, because they knew i was watching the phillies. so it was a big part of my recovery watching the games during the playoffs. >> and you can't blame them for believing that the greatest save in fills hist -- phillies history didn't take part of the field. >> they were just a major part of her recovery, and for sure part of my recovery. >> my neurosurgical team knows what they did to save my life. the phillies have no idea what what they did to save my life, but i consider them my heros now inspect >> and we certainly wish her the best on her recovery and for the philly, be a speedy return to the world series. coming up next, there are hockey fans who take obsession to a whole new level. we'll explain. south africa, an 8-year-old boy picked up the game of golf from his father.

by the age of 9, he was already outplaying him. the odds of this gentle lad winning the junior world golf championships at the age of 14? 1 in 16 million. the odds of that same boy then making it to the u.s. and european pro-golf tours? 1 in 7 million. the odds of the "big easy" winning the open championship once and the u.s. open championship twice? 1 in 780 million. the odds of this professional golfer having a child diagnosed with autism? 1 in 150. ernie els encourages you to learn the signs of autism at autismspeaks.org. early diagnosis can make a lifetime of difference.

finally, you know their names, crews by, ovechkin, preair. they are among the les of the top selling jerseys in the national hockey lead, but as chuck found out, blackhawk fans take their passion for hockey jerseys to a whole new obsession. >> reporter: blackhawk fans love their jerseys. how many blackhawk jerseys do you have? >> i have about probably 20. >> reporter: 20 jerseys? >> at least. >> reporter: from pure hockey passion to borderline addiction. you have your own separate closet for them? >> i actually do. >> reporter: that's sick. >> it's very sick, and i'm horribly embarrassed right now. >> reporter: so if you can't actually be them, you might as well ware them, even if you can't spell them. put you on the spot, how do you

spell -- >> how do i spell it the american way or the right way? >> reporter: the way it's on the back of your jersey. >> byful -- let's see here, byfug -- >> oh, okay. du. >> reporter: no, no,llu. ien. but hawks fans really remember those special ones from the past. >> this is signed by bobby hull, 1983, the year got in as a hall of famer. >> reporter: and who on the back? >> stan mckeithia, number 21. >> that's awesome. >> if i could get him to sign it, that would pretty much take the cake. >> dennis hull, you're the only person i've ever seen besides dennis hull to wear a dale

earnhardt this hull jersey. why dennis hull jersey, why is that? >> to be different. >> reporter: i'm looking here, there's a kane number 14. i hate to say this, but past 88 what happened here? >> no, i'm 14, i'm pat kane, the real pat kane. >> reporter: you were born on the 14th? >> exactly. >> reporter: you were born april 14th, 1960? >> yeah, exactly. >> reporter: do you have your driver's license? let me see this. i need more on that within sense of license. your plummer's license. that says pat kane. okay -- think i'm gonna believe him. but then you might not believe this. you show up showing whose jersey? >> eric, my favorite. >> reporter: and he happens to be here. >> he happens to be here, i came here with my three

nephews, they government me the jersey, and he hannans to be here. it's awesome. >> reporter: have you ever seen a fan wear one of your jerseys? >> no, it's the first one, i'm serious. >> i figured what better way to honor him than to get his jersey. that's the way to go. >> reporter: why were you named after hem? >> my dad's favorite player on the blackhawks. he said he was the best on the pk, swooping up and down the ice. >> reporter: ask and here you are today, and he's right over there, the guy you were named after is signing autographs right over there. >> what better way to come in here and get an autograph, and i added some research to do. i asked him if he tipped in bobby's 50th. so i heard it from the horse's mouth. >> reporter: what did he say? >> absolutely. >> reporter: so at your next

hawks game, remember, everybody can be somebody, and we mean anybody. >> i don't normally ask people this, but can i have of have your autograph? >> sure. >> reporter: i really appreciate this. >> where do you watch me to sign? >> caller: just sign my sweater. thank you, i appreciate pit. >> and that will do it for another edition of net impact. i'm art fennell, thanks for joining us. coming up next months on net impact as the year comes to an end, we'll take a look back at some of our top sports stories that shaped 2009. and to find net impact in your area and for the law enforcementest breaking local

more likelihood he happens to represent. now, in the interest of full disclosure that me say by training and background i am a historian and my love is iran in the 14th century and 14th century sure all and that is a time that iran produced some of its greatest masterpieces in architecture, painting, calligraphy, and particularly in poetry. it was the time of the poet who produced, whose lyrics are not just some of the greatest

masterpieces of persian literature but the greatest masterpieces of world literature. so you had a creative and vibrant artistic people living under rulers who to put it bluntly fugs, fanatics and bigots. that's 14th century. it may be coincidental but some people have noticed a certain similarity between conditions then and conditions now. but you can draw that conclusion for yourself. my historical bias also comes through the subtitle of the book which is bristling the ghost of history.

because my view is that when we and the iranians are in the same room or when we talk to each other or when we attempt to talk to each other that there are ghosts in the room and that we need to be aware of these ghosts and these ghosts are numerous, strong, very powerful and they are very important. there is the ghost of primero subject, the ghost of the cia activities, there's the ghosts of the old oil concessions, mr. darcy for example. there are the ghosts going all the way back to the treaty of turkey. maybe there are good benevolent ghosts. there's the ghost of schuster and howard pastor durham and the embassy takeover.

these ghosts are all there. and they are going to like it or not into affect how that encounters. they will be in the room. i looked at for case studies and two of them actually have nothing to do with the islamic republic. two of them come from before the islamic revolution. those are the azerbaijan crisis of 1945, 1947. the oil nationalization crisis, 51 and 53, and then to come after the revolution. one is the embassy hostage crisis, the second was the crisis involving the american hostages in lebanon and that involved of course was the whole kuran contra. and from these pieces, from this

history, i have attempted to distill lessons what can we learn from these cases? what is there that can help the american negotiator dealing with his or her eye iranian counterpart? whoever they are and the issue may not even be political. it may be partial. it may be technical but whether the issue is a nuclear program or whether it is terrorism, whether its afghanistan, whether its imprisoned american citizens what can we learn from these lessons of the past? i have distilled it down to 14 points, some people call this limbert 14 points. some people, some journalists have called it a 14 step program.

but i think of these as simply ideas. here's some examples of what worked and here's some examples of what didn't work in the past. and these things are not terribly profound or shocking. i think to most of you things like shoes your intermediaries with care, be sure you are talking to the right people, don't get tangled up in legalisms, be aware of the influence of history and all of these things. but all i should make also nuclear this program comes with a disclaimer. it comes with no guarantees. you may do all of these things that i suggest and still make no progress. you can still feel.

why is that? well, the problem is between the two countries, 30 years after the embassy takeover, after those events and about almost 30 years after the formal break in relations of hostility and suspicion still run very deep and they've run deep on both sides. let's look at this. i want to look at this for a second and just showed you how this works and how this two sides continue to look at each other and how this mutual suspicion and mutual animosity gets in the way of making any progress, of getting out of this 30 year downward spiral.

that is a phrase that the late richard university pittsburgh specialist used to u. talk about this downward spiral of relations. you have on one side the i iranian, you and i typify that any famous rhetorical question ayatollah khomeini wants post when asked about relations with the united states or negotiations with the united states his reply was what for? what does the wolf have to negotiate with the sheep? in other words, we are the sheep, they are the wolf, they are not interested in reaching an equitable and fair agreement. they are interested in eating us

or if not literally humiliating s. and that was based on the view of history. but it became a reason based on this mistrust it became a reason for continuing the estrangement. now, interestingly enough, on the american side, you find something similar. you find the view, and if you think this is -- if you think this is dead and buried or wrong. this is alive and well. i have encountered it as recently as last week's, as last week. the view is one could never have successful negotiations with the

iranian leaders who do and say what the current leaders of iran do and say. because they are to fanatical, xenophobic, too suspicious and untrustworthy to deal with. so, let's turn ali khamenei's statement on its head and we get out, what we get is what to do the rational have to negotiate with the crazy and you can see a certain if you detect a certain mirror image i don't think you are far off. so, how do you get out of it? how do you get out of the downward spiral, how do you get out of the impasse? well, in my book i take as my starting point the wonderful

advice from the 13th century poet also a native of share ross and he was talking about something that's very contemporary i think. he said whoever you see in the robe of the ascetic consider that person an aesthetic and man of virtue. in other words, watch out for the preconception. watch out for the negative assumption. that person may be a hypocrite. he may be untrustworthy that until you know, consider him to be what he presents himself to be. and i was reminded of this very interested connection here, back in january when president obama av his first interview we

remember this interview that he gave five or six days after he was sworn in as president, and he -- one of the things he said was we need to put aside preconceptions and assumptions. he wasn't talking about iran specifically. he was talking i think more about arab-israeli issues, but this certainly would apply to iran. because if you go into an encounter with iran assuming that day, the other side are simply too stubborn, to be irrational and unreasonable, then i would say you will fail and you will fail for surgeon. now, interesting to me, you could ask the question, i ask

myself when president obama said this in january was he aware -- did he know about the poetry? he might because two months later when he addressed the iranian people on the occasion of their new year he quoted him, a different poem, a different first, but there it was. so, let me and it this way. you are getting out of this 30 year in pass, what i call for 30 years of futility it's going to take a paradox, a kind of mental paradox. we have to think to almost

contradictory ways of the same time. we are going to need patients and realistic expectations on one side. but on the other side we are going to meet high expectations. we have to be demanding. we call it to be patient and demanding at the same time. because on the patient side we may have to how would you say define our measures of progress in a very special way. progress may not mean resulting a nuclear issue for example in one week. progress might mean something much less than that, symbolic. something not said. a change of tone, as simple as a

handshake, but that, given what's gone on over the last 30 years in my view represents the change and could represent a positive change. this is not going to be easy i should say. let me quote i think it was one of our good colleagues ryan crocker talking about iraq he said everything takes longer than you think. everything is harder than you think that somewhere somehow someone is going to come along and screw it up. well, he was talking about iraq. i think iran that probably applies three or four times. and we have seen it. all the way back to 1979 we had the javits resolution, the access of eisel speech, we had

some -- we had rhetoric about the holocaust, we had this not fishy election and its aftermath. so there are going to be diversions, there are going to be setbacks, and when i say patience, that's where you're going to need patience. now, on the demanding side, here is where you have to keep your expectations ha otherwise you fall victim to your own love expectations, to your own negative preconceptions. if you go into an encounter, and i don't care whether you are dealing with iran or anyone else, assuming you -- you will fail because of the failure of the other side and the shortcomings of the other side

then you will fail. it's certain. however, if you assume success, however modestly you define that, that things not say, that the change of tone is possible then you may be pleasantly surprised by what you actually can achieve. let me thank many who have helped with this, many people here in this room have and always maybe they are not aware of helped a great deal with this project and may find their ideas shamelessly reproduced in the book. so once again, thank you for your attention and i look forward to your questions. [applause]

>> thank you very much, professor limbert. i'm sure the president has the 14 step plan. considering it carefully because we have so much media today and so many people open up the room to questions i think we will do two or three at a time. and let's start with the media. any questions from the media? >> state your name and affiliation please. >> [inaudible] >> i have a question regarding the issues that are outstanding between the u.s. and iran. some people speak of the ground bargain and some people say we have to do it one issue at a time. how do you see it developing?

>> please of america persian news network. ambassador limbert, when at what point did you say enough is enough it isn't working? >> could you clarify that question a little bit? [laughter] there are many ways of reading that. >> once you have gone through or 14 points and steve tunnell door negotiations, you've been patient enough, you have such expectations high. >> okey we will get a question here and then he will take the answers. >> alex, daily telegraph. the urgency now is the nuclear issue. i would be interested to know how profound and you think is iran's ambition -- >> excuse me? >> how profound is iran's

ambition? >> one more than we will get the answer. >> i am from south america. today we have -- >> from? >> south america. argentina. we have brazil today, and i want to know if this is a message to the u.s. that mahmoud ahmadinejad can talk to other leaders of the western hemisphere and try to answer negotiations? >> we will take the answers. >> okay, let me try that. attempts, from your question, attempt at great bargains of until -- the haven't worked too well. again, it's that the suspicion and the barriers of suspicion are too high. when one side has come forward the other side is drawn back.

the u.s. made what i thought was a very reasonable offer back in the 1999, 2000, the last years of the clinton administration, when secretary albright talked about a road map to better relations with no preconditions. and the iranians turned it down and most observers, mom american observers basically said the iranian bluet and this was a good opportunity and they couldn't do it putting it in 2003, we had the same thing from the other direction. it's a good idea if you can get all of these issues out there but it may be too hard to do. so maybe it's this -- if not one

at a time at least dealing with them somehow individually also you can do it simultaneously the problem has been that when we have made progress on certain issues such as we did in 2001 and early 2002 on afghanistan or as we did in the late 90's when we were exchanging a lot of scholars and journalists and athletes and travel and tourists and travel became much easier and things looked promising, up until now those efforts haven't gone anywhere. they haven't led to a lessening of tension. they haven't led to any broad

engagement some. but i still think the grand bargain would be a great thing if we could do it but it may be too hard to do. to answer when is enough enough, you know, i think you are going to need a lot of patience. if it's worth it, and i think from what read and what i hear this administration has decided it is worth it and knows it will take a lot of patience. again, 30 years of suspicion, 30 years of trading insults, 30 years of name-calling sometimes going beyond just rhetoric -- and sometimes exchanges going beyond rhetoric, that is tough

to overcome. but if you some pure chest for 30 years what do you get? you get a sore chest. so, i personally -- i personally think it is worth it. you need a lot of patience. now, when do you throw up your hands? hypothetically there may be some point out there when that happens. but i -- i think it's going to take a lot of patience. ..

each side had laid out its conditions. there were no deal breakers in it. is essentially a deal was ready to be made. a took from september to january of the next year, so about four months, to actually work the deal, work the deal, and there were times when i understand, at least the american side was ready to throw up its hands and

say we will never get this done and it was the algerian intermediaries that kept coming back and said no, keep at it, keep doing it. it is a little bit, a little bit like i said about your assumptions and conceptions. if you go in with this conception that well, this will never work, this will never work, then it probably won't. let's see. okay, the question about brazil. mr. ahmadinejad in brazil. one of the features it seems to me of the islamic republic since its inception has been a certain amount of diplomatic ineptitude.

very early on, from the very early period they have made enemies gratuitously. people who didn't want to be there enemies but were often provoked into being enemies. as a result, they have had a hard time finding friends, which is a little surprising given all of the money that they have, but there it is. and so from time to time you will see sort of diplomatic charm-- i have seen diplomatic charm where they will go out and they will say, yes, we need to establish this kind of relationship and yes we have different systems and all of these things, but up until now, it seems to me they have had, when you particularly look at

some of their relationships with their neighbors, they have had great difficulty continuing that on a consistent basis. so, they have gone back and forth and i think it was someone who said that they have difficulty making up their mind whether they are a state or a cause. and the pendulum keeps coming back to the middle. >> the overflow-- >> i am sorry. repeat it. [inaudible] >> okay, what are iran's nuclear ambitions? i don't know. i don't have that kind of information. i do no that they seem to have framed the issue in terms of national rights and respect so

that what you are dealing with is not so much a question of the technicalities about low-enriched uranium, highly enriched uranium which i look forward to learning about in my new job, but a question of what safeguards our national rights, what safeguards our ability to deal with, to deal with the rest of the world. >> we will take a couple of questions from the overflow room and then we will get back to the press because people can sit in this room but they can at least get questions else. if the current crisis of leadership and islam prevents the islamic republic from coming to the negotiating table, what should the obama administration do? how will domestic politics impact negotiations? in do you expect the full senate

to consider the sanctions legislation that the banking committee passed in the near future in what do you think about that? [laughter] >> okay. let me ask, let me answer last question first. one of the things they taught me is never comment on the work of the legislative branch. they will do what, they will do what they will do, so what do i think about it? i will fall back on what we always say, which i haven't seen the details of it so i really can't talk much about it but in this case it happens to be true. the issue of domestic, domestic iranian politics, how that will impact the negotiations. obviously, it will. the question about can they, can

they negotiate when their domestic politics are in turmoil? that is really a question for them, isn't it? for the other side. my watch word of this is that, if you are going to somehow end the estrangement, if you are somehow going to get in and change the basis of this relationship, if you are going to break a downward spiral, if you wait for a good time, it will never come. it is always going to be a bad time. and, you have to, you have to keep going. it may make things more

difficult. you are going to hear discordant voices but i go back again to the negotiations that got us out of tehran back in 1980/81, the domestic political situation at that point was in turmoil. but, they struck, they did strike a deal. in terms of the domestic situation itself, that of course, i can always fall back on the words of the analysts love to use like opaque and mirky but actually one thing is clear, that the system that has been in place for about 30 years, where you have a ruling men's club of about 25 senior

people. these people include names that are familiar to i thank most people. people like hominy-- khomeini himself, hashmi rafsanjani, and these people who have been important since 1979. and have remained sort of the core elites of the islamic republic as the others came and went, came and went. to things are happening to that group. one, to quote these goller, the average age is now deceased. [laughter] they are getting old, they are departing the scene, but more important, the consensus, which had existed among this group seems to be breaking down and

among these insiders on whose cohesion allowed the islamic republic to survive some horrific shocks such as the iran iraq war, such as the fall of oil prices back in the '80s, such as some of the economic mismanagement that happened, that consensus seems to be breaking down. and, something different is coming out of it and it is hard to tell what, but it seems to be now, instead of this men's club who all knew each other very well, they either were related, had done business together, had done business together-- the system seems to be reverting to an earlier model of rule by the

gun. and rule by force and it is ironic that some of the features that you see emerging now are reminiscent of what you saw under the paddies, where the base of popular support and the base of the elites support was very narrow but with the instruments of coercion in the hands of the government, they held on. >> let's follow up with some questions about how to deal with this regime. referring to the nfd are raining machines, khomeini and ahmadinejad, i guess different approaches. in the wake of the demonstrations after the elections last summer the obama administration's response was

low key to avoid claims by the iranian regime that it was u.s. instigated. reformers are pulling in more open u.s. support. is this a good thing and what exactly should the u.s. do? reformers. >> okay. two questions then. do you see distinct approaches to the u.s.? let me step back from that question. there were distinct approaches by the u.s. to khomeini and ahmadinejad. let me step back to the questions. i am not sure it is one of the 14 points in here or not, but it should be, and that is you have to be really careful about as an outsider of trying to game the

iranian system, and saying well, this person is on top so we will talk to him or that person is, that person seems to be on this gid so we won't talk to that person. one thing, we are just not good enough for that. i am reminded of some advice i got from-- is a foreign service officer. they said when dealing with the u.s. military-- they said to never, never second-guess the military chain of command. you will always get yourself in trouble. find a point of entry and use that, and if this case, it might be maybe we work through our protecting powers with the swiss.

maybe we work through the mission at the united nations. maybe we need to have some other, in some other area but really whatever works. the important point is what delivers, and to second-guess the iranian political system i think is a thoroughly bad idea because you usually get wrong. at least that has been a record over 30 years. >> let's take some questions from the press. we will start with the choice. >> joyce. mr. ambassador i wanted to ask you about the regional situation in the middle east. maybe with the increasing sectarian divide in the events in yemen and iraq and lebanon, where does this fall in the

negotiations with iran and how much does that complicate the efforts of the obama administration? >> voice of america. mr. ambassador could the negotiation between tehran and washington, do you think the subject of human rights should be included? >> my name is wrong with washington tv. your talk discussed bilateral relations however talks of the multilateral for many years, number one. number two their actors that have the interest in the results of negotiations that are not part of it, namely israel and the arab world so how the factor that into this world? >> yes, i would also like to ask

about iran's role in the region particularly with respect to afghanistan both positive and negative mac and how does that factor into any negotiations and is that something that can be used in the negotiations? >> okay. let's see how we do this. it gets that-- the question you asked about sunni-shia issues, it seems to me to get back to this pendulum swing we talked about between state and cause, and which one prevailed. it is very clear to me that the priority for the islamic republic in the last 30 years has been its survival and it will do what needs to be done to

survive. and particularly the leaders will do what they need to do to survive politically, so for example there are things out there that don't correspond directly to some ideological constructs, such as, i mean look at, let's get iran's relations with the only other shia country in the region, which is the azerbaijan. not very good. who is its greatest friend among its neighbors? armenia, christian armenia. this shows pretty much a survival instinct, a survival

instinct that goes beyond sectarian issues. having said that, you know, these issues are out there. i mean, the battle of josephine is still hot news out there. whatever happens, so these things are there so they are not always there. if you-- if you somehow rest on them and they become your sole point of reference, i think he will be misled. what see. questions about-- i think you had a question about israel. >> there are actors that are not part of the negotiations but have a huge stake in the out

come. >> of course, of course, everybody is interested. everybody has a few and i think, i am sure the iranians are well aware of that as well. it is interesting to me that in the last election campaign and iran, president ahmadinejad came in for some pretty heavy criticism from iranians because of his rhetoric, and particularly his rhetoric aimed against is a real. it seemed-- people seemed to be saying sir, that is not helpful. you are not serving the interests of our country very well. this is provocative. this is needlessly provocative and you were going to get us into a conflict that we don't

need, so of course others are interested, and others see this, but again, i would be careful about making sort of rigid categories and say well, the arabs will never agree with the persons or the turks will never agree with the iranians. i think we are seeing in the area a much more complicated picture, and one thing-- another piece of advice, i think it is one of my 14 points, is that in any encounter, you can't lecture-- one of the things we probably should be careful of doing is lecturing the iranians

about what their interests are. they know what their interests are and our miss reading of their interest in the past has gotten us into serious trouble. now, if that applies to the iranians i think it applies across the board as well. [inaudible] >> of course. obviously, i speak as someone whose connections to iran go back 45 years and more as a scholar, as a teacher, as a researcher, as a member-- as a husband, as a son-in-law, brother-in-law and it is very clear the iranians deserve better than they have in terms of government. for a long time they have

deserved better than they have. they deserve the government that treats them decently. should it be a matter of negotiations? of course. should it be the only matter of negotiation? i don't think so. i think there are other issues. i mean i hope we are smart enough to deal with more than one issue at a time. i think we are. >> did you want to follow-up on your question? [inaudible] >> iran. >> host: when the region, particularly afghanistan, how does that play into negotiations? >> okay, as i have often done today, and maybe you can see sometimes my bias as a historian come through. i am going to step back from that because iran does have a very specific view of its role

in the region and one that certainly others should be aware of and we should be aware of. i called this a combination of grandeur and grievous. that iran at one time was the superpower. the monuments of that are all over the iranian plateau. you can see the bakri ends from afghanistan for example bringing tribute to the great king. you can see the syrians, the phoenicians, the egyptians of bringing, all paying tribute to the great king. you can see, later you can see another great king receiving the surrender of the roman emperor. i mean, this is a big deal and iran was a big deal. unfortunately for the last 300

years, there hasn't been a lot of glory but there has been a lot of grievance. and, so you have these sort of two things playing out in what would you call it? in the political culture. of yes, we once were the great superpower of the region but for the last 300 years others have chopped away at it so with the look at what the british took, what the russians took and all of these, all of these ancient areas, the caucasus, central asia, part of afghanistan were once hours. does that mean they want to reconquer it and set up a new person empire? i don't think so, but it is out there and that i think is what you are dealing with. i will say finally in persia

there is a nice expression if someone has been gone for a long time, and you see him, very often you will say to him, were you in kandahar? [laughter] meaning, you were on the moon, and that is often the way it is the. i don't want to get into it now because i am really not so authoritative on this subject but the way the iranians and afghans looking at each other is probably the subject of a whole nother book. >> in early in washington the victims of the lack of historical perspective? [laughter] >> god forbid. >> what is the relevance of opp ahmadinejad's stated belief that the imam is on the threshold of-- and another question about sanctions, a long one. many politicians believe then sanctions.

what is your opinion? >> okay. on sanctions, you know, in theory, these things should work. is the beginning of pressure but we have had the u.s. sanctions on iran for 30 years. i haven't seen, i haven't seen them do much but what they have done i think, whenever their economic effect, the iranians don't like being single out. i.t. offence i think a sense of self-worth and self-esteem. they don't like being put in the same boat as north korea or libya of or sudan.

so, the effect of sanctions i think is less a direct economic one and more a psychological one. it was interesting to me that in 2003 when the iranians put forth their grand bargain proposal, or at least what is reputed to be there grand bargain proposal because now there is debate over just what this was, but at the head of the list of what they wanted was removal of sanctions. so, clearly what never its economic importance is and it feeds back into this other issue of sense of self-worth and grandeur. let's see. what is the other one?

lack of historical perspective in washington? that will come as no surprise. americans are the-- have all been accused of being a historical, of not remembering history. iranians might be accused of having too much history, of not for getting yet, but certainly what plus, put meat and my colleagues into the soup in 1979 was exactly that. i still remember the accounts of the deliberations at the white house in october when president carter learned that the shah was sick and his advisers all said to him, he said you should let him. he has been an ally for 25 years

and more. and so, finally secretary vans i believe, it was secretary vance he would been opposed to it manning the shah for a long time said well, if we do this we have to tell the iranians that we are doing this only for humane reasons and he is coming only for medical treatment. now, what is the problem with that? no iranian over the age of three would be leavitt, given the history. because there is an example to me of where you miss the ghosts. the ghost was in the room and you did not see it and someone in that room i think should have

said, mr. president with all due respect, no one has given the history of our relationship over the last 25, 30 years. no one is going to believe you. by the way, i will tell you a story. i had the chance to test that theory. about a year-and-a-half ago i was on a panel at columbia with none other than dr. breheny who was the foreign minister of the provisional government at that time and he was the one that ambassador laingen had to go to on the 20 or 21st of october to deliver this particular message about medical treatment and dr. d'este was a ph.d. from the united states. i think he was something in the medical field, if not a physician but lived for a long time in the west and i asked

him. i said doctor, when ambassador laingen told you about the shop's condition and was being admitted only for medical treatment, what was your reaction? he said, i didn't believe it for a minute. so, history matters and it matters sometimes in strange ways. it is than that you have to know all about who were the sistani in's and who were the-- these people but be aware that those ghosts are in the room and they will be affect, they will affect what happens. >> there you go. >> i am really not a specialist. the question is what is the relevance of ahmadinejad's

stated believe that the mom is on the threshold of free appearance? i have to beg off of that one. i am not a specialist in shia theology or eschatology. whatever is going to happen but, i don't think i would read this as an apocalyptic statement. i mean, if we have a secretary of the interior a few years ago who said why bother planting trees, because the end of the world is coming and it won't matter. you know, this is, this is an idea. ait is a very strong idea, that's the hidden imam is alive, is in hiding, and will return,

not necessarily to and, at the end of the world and this is sort of on a clear to me but as i understand it is not necessarily the end of the world but it is to establish justice in the world and to reclaim the usurped rights of the house of the profit, and that is why he is returning, so i would be very careful about saying well, all they want to do is destroy the world because that will hasten the return of the hidden imam. it is a very strong belief. i am not sure how it carries over into politics. >> thank you so much. >> thank you. thank you. [applause]

[inaudible conversations] [inaudible conversations]

with

the new report from the water resources group predicts a 40% increase in demand for fresh water in 20 years ago the group, a consortium of mostly private companies hosted this discussion that included world bank president robert selleca and former interior secretary bruce babbitt. this is about two one-half hours.

>> ladies and gentlemen if i could ask you to please their taking your seats. we are going to get started in just a few minutes so if i could ask you to please third finding your seats. ladies and gentlemen if we are going to get started, if i could ask you to please take your seats.

good afternoon. i am the director of communications at i at sea. good afternoon presidents zoelleck tour distinguished panelists, honored guests, ladies and gentleman for the welcome in thank you for joining us for the launch of the charting of our water recesses report. this report was published by the 2030 resources group which was formed in 2008 to contribute new insights to the issue of growing water scarcity. the group worked to create an integrated fact-based report in order to advance solution triffin dialogue amongst stakeholders. through this project we have a better understanding of the water challenges that be will face in the years to come. was solutions exist and the cost of those solutions. the report highlights the importance of collaboration, a collaboration between business and finance as well as collaboration among public and

nonprofit sectors. indeed it was a collaborative effort by a range of organizations from the private and social sectors. en sponsorship came from ifc a member of the world bank group, the can see and company frew the analytical execution and develop the fact base for the report itself. sponsorship, guidance and expertise came from a diverse business consortium including the barilla group, the coca-cola company, nestle, sabmiller, standard chartered bank, syngenta, h.g. and the world bank. this preliminary will serve to introduce the public to the work of the water sources group and act as a catalyst to drive constructive dialogue among the world's decision-makers on water resources issues. we will hear a presentation from the findings of the mckensie team and the panel of distinguished experts. now i would like to invite the

president of the world group bank, robert zoelleck to make some introductory remarks. [applause] welcome to the world bank for the launch of this very fascinating report charting our water future which i hope will help change how people think and act about water. over the last century the world's population has increased threefold. water use has increased sixfold. today over 1 billion people in developing countries lack clean drinking water and according to the united nations a child dies from water related disease every 15 seconds. if water use continues at current levels today's water supply may well be inadequate to meet the needs over the next two decades. for many countries there is a real risk of water insecurity.

so, the global water security warrants much more attention by governments seeking to achieve economic growth and development and it needs attention now. is an indication of the concern about what security, how widely they are shared that the report we are launching today is benefit from the support, advice and analysis of so many different groups trying from academia, the nonprofit sector, international organizations and of course the private sector and i see many represented kids from those groups here with us today. i would like to take this opportunity to thank all of this that contributed to this report, particularly the 2030 report fled i mckinsey and company and comprised of seven private-sector companies, the barilla group, coca-cola company, nestle's, sabmiller, new holland, and syngenta. thank you for your valuable

work. having grown up in the american midwest and then moving to the east coast in the united states i corrupt in an environment of plenty of fresh water. it wasn't until i spent some more time in the american west that i developed a better sense of the life-and-death nature of walker security. there i could see the effects of water or its absence on history, explanation, my gration, flora and fauna and development. water is probably our most valuable resource on tariff but has been overused, underpriced and over polluted. management of the water sector in most countries but particularly in the developing world where capacity is limited and competing demands are many has not received adequate attention. water is a crosscutting issue that affects all key economic sectors and all countries but most notably in food and energy security. water scarcity poses a serious threat to food supplies, for

example which has consequences for hunger, poverty, malnutrition, maternal and infant health and even conflict. efficiency-- which together represent 90% of total freshwater used globally. executives in cities have already realized that current water management practices pose unacceptable risks. many businesses are coming to the same conclusion for their industries. competing pressures between these different groups are contributing to a complex debate about who has access to water and hallet is used. climate change introduces additional uncertainty and stresses for water security. much of the world's population already live in water stressed areas. there is particular concern about the fate of more than 16 of the world's population his water supply depends upon glaciers and river basins that by melting snow and will be threatened by a decrease in water volumes stored in those

glaciers. shaping and then implementing practical water policies will pose a serious challenge of many countries but i believed we are at a point where there is the real opportunity for the public and private sectors to work together based on shared interests to address water scarcity. we are moving away from viewing the private sector in this issue with suspicion to one where private sector participation is seen as a critical part of an integrated approach to water resource management. and we are starting to address the questions of why and how water, and widely considered a public good, needs to be priced to ensure effective management. these issues are not easy but cooperation between the public and private sectors on water security is essential for effective been sustainable efforts to solve this problem. time is running out and that is where i hope charting our water feature can help. the report presents a clear

picture of the scale of the water challenge and the cost of the solution. it also shows for the first time how future demand for water can be met through cost-effective measures using existing technologies. it focuses on case studies conducted in china, india, south africa and brazil for growing economies with distinctly different water issues. this report aims to assist policymakers wrestling with these issues by giving them a much needed that's based framework for analysis that can help them determine in the particular country context which actions may reeled-- yield results and at what cost and what trade offs. for example in india 80% of all water demand is from the agricultural sector so the report recommends these cost solutions in this area such as using irrigated reign fett krop production measures, improved irrigation controls are not only

smart for water management but they make the land more productive, save energy, decrees emissions and save topsoil. south africa on the other hand presents a completely different situation. there, agriculture is expected to account for only 47% of the mendon 2030 well urbanization and industrial demand will account for 53%. in south africa water solutions will need to balance shifting demands for rural and urban populations. policymakers will face difficult trade-offs among industrial activities such as mining, that's growing urban centers and agriculture. this report can help by showing the range of options for addressing water management in each of these areas, how much water they say and how much they cost. while some of the solutions proposed in the report involves sophisticated industrial equipment many are surprisingly simple and loebsack. in the metropolitan areas such

as s.a.l.t hollow for instance which has a high population density of water conservation and management can be cigna the newly improved simply by installing waterish vision salih-- showerheads. the good news coming out of this report is that despite the death and the extent of the challenges facing the water sector, it can be possible to meet competing demands for water without the costs being prohibitive. this kind of technical measurement is only a starting point for looking at the broader issue of water security but it does provide policymakers with a picture of water use across the economy. agriculture, industry, municipalities and available option' can help build up an integrated approach to water management that includes both technical improvements to increase water supply and measures to increase the productivity of existing water. these tools can open the way for a multistakeholder effort to implement sustainable and

cost-effective solutions in countries or regions. more importantly they can help countries avoid expensive mistakes. this report builds on valuable work and analysis and the world bank group has been trying to raise awareness and understanding of the challenges to water security and to develop innovative tools and approaches to try to address this issue. we have been engaged with water security for some years now, from 2006 to 2009 the bank group invested over $15 billion in the water sector. next week on a trip by taking to india i will be visiting the improvement project which we support with concessionary findings. this the project aims to improve the management of surface and groundwater resources in village communities such as increasing the productivity of irrigated agriculture. earlier this month wallen singapore i took time out to visit the marina arash, a fresh

water reservoir at the very heart of the city. for a century one of singapore's greatest risk was its dependence on outside reservoirs'. today singapore collects more than half of its rainwater and through new filtering technologies is seeking to meet close to two-thirds of its water use by 2010. in many countries with coastal areas rising sea levels may increase salinization of groundwater and estuaries reducing available fresh water for humans and ecosystems of the bank completed an analysis of the potential impact of salinization in bangladesh and measures that can be taken to protect the population. we are also helping some countries to address glacial melt. in bolivia-- we are supporting alternative city water supply needs. ideas see is working to increase private sector engagement and

investment in the water sector and is this report shows we see the private sector is playing a key role in water resource management not only in terms of finance but critically in terms of the efficiencies. private sector experience in operating water systems for instance can bring significant water savings by reducing water use and efficiencies in industry, agriculture and municipal water systems. these savings can be translated into energy savings which helped reduce costs and carbon footprints. for example one of ifc's investments is the manila water company, a water and sewage private concession which took over management of the state-owned utility works in 1997. today with diet see's help manela water has transformed the public utility into a world-class provider showing water privatization can succeed economically and deliver to the poorest. it is a great example of private sector involvement in mes ours

management that can provide valuable lessons for potential investors. not all of our experience or others have been so positive. one of the things we also help companies and actors to do is to identify and manage some of the water related risk. we have been concerned about ensuring access not only to the need and quantity of water but water of the right quality. just over a third of the complaints dealt with by the c8 uh-oh, ixc's and appendant accountability and dispute resolution body are related to water access but we want to help companies learn from these experiences and help avoid these mistakes. drawing on the work done in various communities particularly in peru, we have established a practical guide for companies working with communities to monitor water data up the project level. increasingly this guidance is being adopted by the private sector companies, banks and multilateral finance institutions. at the world bank group a core

part of our water strategy is promoting an integrated approach to managing water resources that involve partnerships between the players and removing beyond traditional models focused on distribution to look at the supply side gains from the efficiency measures. but governments are the ones that have to take the lead. efforts to increase water supply the said the coupled with improved productivity of existing water supplies as well as ways to reduce and conserve the water by reducing demand. one the demand side we need creative approaches such as property rights that give users an incentive to protect their resources. both users and managers have to be in a position to make informed choices which means strong institutions and sharing information at all levels. so i hope the report we are launching today can contribute to discussion and all of these areas and informed decisions at that level for both the private

and public sector actors. water is the key development in security issues for the 21st century and is going to require all this to work together, balance competing demands to meet the challenges of an inclusive and sustainable development. it won't be easy but it is vital so thank you for joining us today and thank you for your partnership. [applause] >> i apologize, i am going to up to run but i am sure what all of you are going to see and i had a chance to have presentations on this earlier. this is a fantastic product. as you look at the case that is what i've found to be most significant was out these case studies really do show you the very ability for each country and give a policymakers sense about how to approach this problem so again i really want to thank you were partners and friends at mckinsey. we have done a lot of work together but this is an example of trying to apply techniques to

an issue that hasn't got enough attention and it is very important we use this event and others to raise the profile on it so thank you for coming. [applause] ♪ the water is so important for all aspects of the economic and social development. >> it is absolutely crucial. >> this also the most important for the sustainability of humankind. >> you can live without television, without a car, with added bicycle, without extra close. you can't live without water. >> yet societies currently using one of our most precious resources on the planet

unsustainably. there limits to what our natural systems can provide in the strains are beginning to show. >> the water issue is starting to impact people right now. >> we are increasingly getting periods of drought in drought stress on plants all around the world. >> in australia the amount of water available for use is now 30% of what it was ten years ago. >> in california a lot of the farmers of simply not been able to get the water they need to grow the crops that historically they have grown. >> london for example has said to consider these felonization plans to cover peaks. planted shutting down power plants during the hot summers. >> there are clear and visible signs of stress now but what will the picture look like in 20 years if we do not take concerted action? >> there will be something like 40% gap between supply and demand on a global scale by 2030.

>> nobody says alben the water challenge will be easy but what are the major barriers the head? how will be overcome them to unlock new and existing solutions? >> the challenge of protecting water resources and using them responsibly is important and extremely complicated. >> demands placed on the system are unique to each country. it is estimated that without efficiency gains in 2030 80% of india's total water demand will come from agriculture. in contrast china's water gap will be driven by the doubling of water demands from both industrial and power generation as well as urbanizing middle class. >> it will take a mix of innovation of new and existing technologies and techniques combined with smart policies. >> the key thing is that governments have to have the right amount of data and the right quality of data to be able to start making those decisions on the right framework.

if they haven't got the right data they are guessing. >> the public sector and the private sector has to work together. >> and everybody has a place at this table, because the challenge is huge and simply we need everybody to be involved. >> all the difficult we need and face a water crisis. the water gap can be closed sustainably and at a reasonable costs. >> i do think it is solvable but we have to act now. >> it is possible but it will require a different kind of thinking. >> with the right technologies, the right financial structure and a key focus, conservation and efficiency, we can reverse the course and alleviate water stresses throughout the world. >> together we must work to solve the water challenge. our future depends on it. ♪

[applause] >> ladies and gentlemen good afternoon. my name is-- from the international finance corporation. i work in the infrastructure department, specifically on what you are. on behalf of the 2030 water resources group i am delighted to welcome you to this afternoon's events, particularly to the presentation of the work, on the report that the group has produced. i would like to tell you a little bit of a story on why we did this and how we came together. and about a year ago, the world bank group, mckinsey and a group of private sector companies came together on a common concern about water availability. availability for agriculture,

availability for industry, for energy and for use for human consumption. we looked at some of the numbers out there and we didn't get a complete picture. we were quite worried about the kinds of conclusions that thing to being drawn on the basis of what we thought was an incomplete framework of numbers. we then spent the last one year or so putting together an analytical framework, vigorously put together from the basin level up and the number of countries to come up with what we hope is the fact-based division on looking at the water sector. we hope that the framework we will present today will be something that will be useful as a tool in addition to all the other tools being used either by countries, policymakers are private investors were looking for opportunities to engage in the water sector. it is my great pleasure to introduce the two colleagues from mckinsey you been leading this work along with ourselves,

giulio boccaletti will present the work this afternoon. thank you very much. [applause] ..

advisory group. i understand that all of you have read reports on what her. all of you have been listening to presentations because you care about water. you invest in water, right about walter, you are shaping the public sector agenda and civil society agenda and still i hope i am not ahead of myself in seeing that the sense that there is a joint sentiment of disenchantment if not a sentiment of frustration of how

the water sector has been starting over the recent decades and how little progress there has been in something which is our most precious resource. the public sector might be disenchanted because the institutional deadlock that seems so difficult to overcome at times. private sector or corporate players might be disenchanted because they feel left alone with their risk and exposure to their production but also their license of operates, to operate. writers and activists might just feel and listened to. over the recent months in doing this work we have felt increasingly startled if not alarmed by some of the findings that we need. but also, and i want to say that we have also been very -- we are also very hopeful and comforted by some of the findings we have made. i would like to use the next 20 minutes to introduce you to our

findings. we have had the chance over the last 12 months to build a huge database on the economics of water and out of all of those data findings we believe that there are three messages that stickout. the first one is the water scarcity and walter challenge israel. it's happening today. and the gap between the demand and supply is increasing at an accelerating speed. the second point that our research supports is that the old ways to do not work anymore. we cannot continue in a business as usual way. the third finding the we want to share with you is a hopeful one because we believe there is cost effective solution to the water problem however that solution is settled differently from the solution that we looked at in the past. it's distributed across the entire economy and that takes a completely new and radical approach we both have to adopt

in order to overcome the water challenge. so the first question we ask yourself is the water challenge real and how big is the gap. >> thank you. how big is the situation and how big is the gap? let's consider first how much water are we using today? how much water are we using in the economy today and we calculate about 4,500 kilometers of water with strong across the economy this is for municipal use. 4,500 withdrawn. if we project forward on constrained we assume the economy stays at the same efficiency levels we have today. we don't do anything to it. we let it grow as if nothing were considering it, then by 2013, for 2030 we land somewhere around 7,000 water demand it. winstrol again for the entire economy in 2013 unconstrained. agriculture infrastructure, everything. the question is why should we

compare this number against? will we have enough money to the quarter to meet the demand by the future economy? and so, in reality the number we should be comparing this against is not obviously the total that we have in the world, that is the relevant number. the relevant number is will we have enough water to meet the demand where and when they are needed, where and when it is needed, to we have enough water where and when it is needed. so the question how much water do we have today when and where it is needed that is around 4,200. that is the amount of water we can deliver when and where it is needed, a certain level of reliability and so if nothing is done and again i want to stress this, we will face a gap of 40% globally. between the projected demand and the amount of water we can deliver. obviously this gap will not happen. something will close, and the question is how will that close itself? with the close by curbing demand or by adding supply, how will we close the gap? 40% globally is the number.

we obviously know that water is not a global issue it is the sum of many local issues, and so if we now look at a different picture and break that down we break down the supply by region, by bees. we look at the 150 regions of the world shown here on the curb and the horizontal, you can see the population from zero to 100% each block is a region for macrobasin. on the vertical axis you see the gap that i just described, the gap between the demand in 2030 and supply we are able to deliver where and when it is needed. and as you can see, the good third of the population, the people that live in the blue boxes if you will actually live in basins where the gap is bigger than 50%. in some cases it goes up to 75%. 75% or more demand are met with the currently available supply. now in some cases obviously

cases like india and china we have to look at even greater detail and so we went to the basic level and again the story repeats itself. it is a story of difference between the sense and not in some cases large gaps. so, we looked at this global picture and fragmented across the 154 reasons and then asked well, we should look as earlier said that specific case studies, specific case studies that can tell how the water challenge changes because the water challenges different across many countries, so we looked at china's fraction of world gdp today and in 2013. we looked at india and its agricultural challenges. we looked at south africa and the challenge of meeting the recommitting the competing demands. we looked of sao paulo. so let's look at some of these. india for example. this is a picture for india in 2013. these are the gaps in 2013

india. as you can see most of the 19 d since looked at in india will face a gap in 2030. what is driving the gap, you can ask. what is causing the increase in demand? the answer of course is growing consumption, the growing need, growing withdrawal of water for agriculture. today agriculture requires a run 700 kilometers of water primarily by royce, wheat, sugar. white 2030 again with growing constraint if we maintain the practices and just grow the cultural use forward we find that the economy, india's economies and agricultural sector will require almost 1200 kilometers of water. so agricultural story in india. it is walter solely and agricultural story the? no, unless you think it is, let us look at the case of china. china 2030. a similar story. some of the main bases in china, the river, they all face gaps, again, if unconstrained out of

2030. now what is driving the was? well, in that case agriculture please an important role of course. but the growth in demand, the growth that then causes the gap to increase as industry and municipal use and in fact as you point out half of that was from industrial process for power generation. so the second question we ask ourselves, can we allow ourselves to continue in a business as usual and the answer looking at the historical improvements are simply no, we can't. let me tell you why. here we are looking at the walter gap described. it's going to be about 3,000 kilometers until 2013. and if the gap is widening and the speed is increasing. it has to do with a stable, and essentially stable supply. but at the same time exploding demand driven by economic and population growth, driven by changes in the increasing water

intensity of the energy sector. we ask ourselves could it be that supply is actually helping us to close the border bridge we see in front of us as we look in 2013. and what we find if we continue to increase our stock of supply and for stricter it's going to close 20% of the gap. so the second question we ask ourselves is it operational -- is it improvement in water productivity that actually will help close the gap, and again, if we assume historical rates in the improvement here we will have another 20%, so we effectively are left with 60% remaining gap for which we don't have a good answer. and i am sure we all agree for something that is so essential for our economic, social and environmental well-being we cannot afford not to have a good answer for 60% of. 60% to put it into numbers comes close to 2,000 kilometers. 50% of all of the withdrawal

humanities using today. so, what did we do in the past business as usual? what did we do in the past? did we have good answers? in the past we had to be answers and both of them were essentially be the first answer has been to draw more supply. one thing the study can unambiguously show is the marginal cost of additional supply for water in fact exploding they are prohibited. if we expect that if we want to close the wage just by supply-side measures the cost per annum would be in the rate of 230 billion u.s. dollars, prohibitive. the second answer we have in the past is basically just to let the demand go on met which again with regard to the opportunity cost, social economic seems to be in on viable solution. so, what the discussions with many of you have actually surfaced and the question is that keeps the ministers leap

that might or a week and might or finance ministers or sometimes prime minister's is there a third way? is there a better way to manage water and move toward what we call the blue economy? and its two questions on top of their mind. first, do we have an opportunity to close the gap and secondly what is the cost of it? during our work we've got all kind of this joint piecemeal solutions. there's a lot of policies and a lot of information about all of the different letters about the strong speculations and about integrated pest management. what was missing in the fully answer to our understanding was a framework that helps you to organize, to answer the two big questions can we close the gap and what will it cost to close the gap? what the team came up with is an organizing framework in which we want to call the water availability assembles all of

the available livers we have to close the water gap essentially in one chart. all of this means not just the supply side letters with the demand side letters of the productivity enhancement for efficiency drivers in agriculture but also in industry and also in the municipal use like the more innovative showerheads that have been mentioned. so it's also looking at the letters from the sectors and it's looking at the letters in according to a very stringent definition so that you can make them compatible. that is what it does and then it is describing those levers. first along the horizontal axis we are trying to quantify what is the volume increment this brings the solution or the closure of the water gap and secondly describing it along the vertical exit what is the cost to implement the levers for the water user and what we found

startling was the fact that some of those measures in effect give you a gain so you don't pay for them in fact they give you the net gain because water saving and cost savings hand-in-hand and if it isn't cost-saving there is additional revenues if you are increasing the productivity of your crop for example. so, you might find all of that very technical, and it is. at the same time, it puts us in a unique position to elevate the quality of the dialogue with key decision makers because it is able to answer the big questions. first can we close the gap and the answer is yes the gap is indicated as the green shade on the curve which is again, country by country specific and the answer is yes there is enough means even on the basis of technology to close the gap and the second question can we pay for it and here again just by aggregating all of the cost of the different levers we come back with a number. we want to make one caveat up front. we are not singing the you do

have to implement all of those letters from the left to the right. because there are many reasons not to do it because each of those leaders is a very complicated analog because you might not have the political means. you might not have the order to do that. however we do want to state that you shouldn't make the decision without knowing what you are forgoing if you let go of one who leader and will extend your increasing the average cost of the total water solution. that's what we are after. us see how this works in practice. as said we looked for geographies. and just by looking at it you find out the solution has very different patterns. china, india, paulo, south africa, india has a yellow solution because that's the color we chose for agriculture, so here most of the solution

comes straight out of the agriculture sector. it's different in china which is a green and blue country if you want where it is -- there's a number of free cost effective supply-side measures available plus improvements in industry and so on. let's look at two of those examples in more detail. >> let's look at india and china. india and china's solution. start with india. this is india's cost dominated by agricultural levers you can see all of the yellow letters. this was put together as an abrogation of cost curves for 19 different areas. suites the kind of summary with that picture would look like. the question is of course can india solved this water gap, the water that we are projecting, tenet de felch? how much will it cost, so we do this analysis. we overly the gatt that we projected for in degette over the cost curve, and you can see to important fact.

the first thing it can resolve the water gap and in fact it can do so with some room to spare if you will. the second point which is also important is how much will it cost? if we add up all of the costs on an annual basis across all the measures we found a number around 6 billion u.s. dollars per annum. that is in a very large number for the country the size of india in 2013. 6 million per annum. i hasten to add this doesn't mean it is easy but it does mean that the financial commitment required are not that large. the financial commitments are not that large. now you can see that the solution if you stick to the path ponder the gap the solution is dominated by agriculture measures. 80% of the fact is an agricultural measures so let me show the full range of things looked at from the ferry left side of the way to the thermal

[inaudible] let me pause on a few. there are three different types of livers we looked at. first of all increase the efficiency of agricultural production. you can produce the same amount of crops with less water. things like systems commager to irrigation, sprinkler irrigation and the of the other factors as well but you can say the efficiency of our agricultural production. another type of letter that still presides in agriculture it is possibly more important is yielding improvement. things like farming, he repeated fertilizer, integrated plant stress management, this sort of thing increases the amount of production that can be extracted from a piece of land which means you don't have to actually -- you don't have to extend irrigation into a new piece of land which means you will reduce the amount of overall irrigation. these are the two types of agricultural measures needed. i said 80% of the solution is yellow. agricultural measures, there are

20% that are not. there is almost never a silver bullet here. it's always a competition. this will be seen across the presentation. as you can see the supply measures are needed for example india has a large infrastructure that meets rehabilitated. infrastructure, artificial recharge, things like that play a role actually in ensuring the gap is filled. so this is the story for india and let us shift to china, we saw earlier the gap for india and for china and been driven by agriculture, the solution i showed you is agricultural. if we look at china we see a more complex picture with industry playing a role. this is the picture for the cost curve in china. china you can see colors across entire spectrum meaning the solution is a mixture of everything from industrial efficiency of the way to agricultural efficiency all the way to the additional supply. and we came back to the same question. will china be able to meet the gap? and what we find is again, i guess, again a hopeful message.

this is an abrogation of solutions at the level and what we find is china can indeed solve its water gap and it can do so at in net savings we calculate under this condition about $20 billion per annum will be saved in china if we adopt measures that save water and other imports. and in fact this is the full picture with the cost curve looks like. there is an analysis behind each of those. but the point i should make is that if you just concentrate on the left-hand side of things the result in the savings you end up with about 30 billion, 40 billion in savings by efficiency. >> the cost curve seven commandeer difficult to read and our leaders and to produce. that is why we want to show there are more than theory they in fact can support greenlight decision making solutions. let's choose the example of south africa.

south africa is in every country as we know and we are expecting a wider deficit of about 3 kilometers in 2013. there is the need to close the bader gap. one could do it with least cost solution which is described here and it's one that in fact has net gains because you do have seen things as you do that of 150 and it's a program that we would be able to close the water gap. however you could decide you want to shoot for improvements on the infrastructure site only or you might decide you want to choose improvements productivity boost, something like a revolution of agriculture only. and what this data does in fact shows you what extent you are able to close the gap and the financial implications are so and be given set of economic activities that much of agricultural production that choice of crops and industrial

activity you can choose different options how to optimize the water sector and close the water gap. however would you also can do is broaden the chess board. he can look at different scenarios. some of them are indigenous where you can choose i want to step up my economic activity. i want to get rid of wheat production in saudi arabia and see what the water implications again both agricultural and financial are for the geography and you can do that for genius scenarios which are of course something on all of our come out of our minds right now like the effect of climate change where you could begin say if we have a certain assumption of how climate works for geography well what the economic water repercussions actually be? >> and so we've shown you some analysis. we know at the end of the day this isn't about analysis this

is about transforming the sector and the way in which people use water and it's much more complicated than that and people often will raise questions like well what about pricing and incentives and the role of large water users? what about institutional issues. there's a host of questions about how do we get to the water that, when you engage in this and we have no illusion that this is a simple answer and analysis will get us there but we do believe that the work we have done with our partners and with the help of a number of experts on the advisory board and in countries is a helpful step toward answering some of those components and so for example we believe in order to get there we need a fact base, a vision of what the economy and a sustainable state should look like. what does it look like? what kind of economy do we need? what kind of economy will we go toward that can actually state the amount of water we have? this is the sort of work that

can help this destroy the economy. who needs to be involved? who needs to be involved in the leadership level? is this a water ministry only problem or is it actually all the government and private-sector of the country combined? is it something that should involve everyone given the types of levers and i think this helps us there. third, what kind of regulatory regime where does the pricing plan, what role does it play? again what this does is it underscores the world of economics and understanding the costs and received economics users how the levers are adopted. will people see efficiency ifill dwinell? why aren't the capturing the things that should result in the savings? fourth, the private sector almost half of the things on the cost curve need to be adopted by the private-sector in one form or another making the funds more efficient, making industry more efficient and power plants more

efficient and that will require capital and will require up-front costs and the private sector will have to be involved. there's a big role for the private-sector to play. third, large users we hear all the time the role of different sectors of the economy, manufacturing, textiles, mining, power. all of these have a role to play and we need a map that we can place them and finally technology. technology capabilities. at the end of the day was on the cost curve is the existing measures but we need to make sure we can maintain the capability and continue to develop and innovate so we can maintain this system ability of the economies over time. >> let me summarize and reiterate the three major messages we want to send is a, the water challenge israel and happening today. the water gap in demand and supply is already there and it's white man. second we cannot afford to go to business as usual way anymore

and third, we believe that there are costs effective ways to close the gap. however as the nature of the solutions are different from the nature of the solutions we have been drawing on in the past me to adopt a completely new approach. before i close we haven't done this in isolation. we had a lot of opportunity to discuss this work and develop it with you, many of you along the way, practitioners but also decision makers. what we are sensing in those discussions is that there is a very high willingness to raise the cost of water and go new ways and try new approaches. we would be happy if the group would be received as helpful and timely. thanks a lot. [applause]

>> good afternoon. i sees investment activities in the infrastructure sector. it gives me pleasure to introduce to you deputy secretary of the interior mr. david hayes. deputy secretary hayes is the second ranking official of the department of interior. he serves as department chief operating officer and has authority over all the departments bureaus and agencies. throughout his career deputy secretary hayes has been involved in developing progressive solutions to environmental and natural resource challenges. he previously served as deputy secretary counsel to the secretary of the interior in the clinton administration. he's a former chairman of the board of the environmental law institute and served as a senior fellow for the world wildlife fund and was vice chair of the board of american rivers. among his other professional

activities he also worked for a number of years in the private-sector where he chaired the environment land and resource department and international law firms. he's probably superbly qualified to give the keynote talk. so thank you very much for joining. [applause] thank you very much. it is a pleasure to be here. subbing for secretary hillary clinton and i first want to say congratulations to all of you for putting this together, mckinsey & company, the world bank and the sponsors. there is no more important issue as you all know dan looking toward the future of the water situation in the world.

the issues you are looking at and focusing on what's the scale of water scarcity globally we are looking at in the future and what are its implications? what are the impact's going to be in terms of economics and social impact? how is it going to affect our energy needs and opportunities? what investments are we going to have to make? these are hugely important issues and i want to share briefly if you perspectives but first i have to establish my credentials because despite the kind introduction some of you might say he's with the interior department, why are we listening to this guy? but let me explain and see if i can justify my existence in front of you as the keynote speaker. in fact the interior department is deeply meshed in the water issues affecting the united

states, and i would argue that we are a microcosm of the issues affecting the globe. the interior department is the major water provider for the united states government. through the bureau of reclamation we are the largest water wholesaler in the world. we supply drinking water to 30 million americans. we irrigate one out of every 5 acres of land that is irrigated in the united states with water from our projects. the secretary of interior is the water master for the color river which serves the entire southwest and is the primary water source for colorado, probably not primary for coloradan but important. primary for arizona, nevada, extraordinarily important for california as well. in addition we are the largest project proponent i should say,

overseer i guess of the water projects in the state of california including the california water, central valley project that brings one-third of the water supply from northern california down through the delta and serves the coastal south 20 million americans that live in los angeles terse and diego so we are deeply involved as a water provider. we are also deeply involved in the environmental consequences of the water use and seeing the interface between the use of water and environment and let me give a few examples. among other things we are a bit of a federation at the department of interior. not only are we in major water supply year but also have environmental stewardship responsibilities under the endangered species act for example and when there isn't enough water available for the environment because we are

supplying a or helping to supply it we have to bear the implications of that. we are seeing it this year in spades in california where in california in the third year of a severe drought we operate as i mentioned it brings water through the delta down from northern california to southern california, the combination of the drought and environmental degradation of the largest estuary on the coast of the americas and adel tough has led to the crashing of native species, sam, native species and under the endangered species act we have to protect the species. we are turning down the pumps. the combination of the drought in effect of the species has limited water supplies through the system from an normal delivery of 5.7 million acres to this year 3.6 million acres of

water. leading to a great political implications as unemployment in the valley has spiked and concerns have risen about whether our department is favoring fish over farmers. we are seeing some of the conflict between water supply and environment. believe me up close and personal that i think are spreading across the globe. likewise, even on systems like the missouri river we've had operational issues associated with the decline of certain native species and in the northwest where the department operates some of the largest water projects and dams including the grand coulee dam and others on the columbia river we see the downside of water management name the impacts on the native salmon species and implications there to. so doing pretty well, got the

credentials rolling. i'm going to keep giving and give a few more credentials and then stop with a few observations. we also at the department of interior are the primary federal agency involved in energy production in the united states. now that's a surprise to most of you, isn't it? because we are not the department of energy we are the department of interior. however the department of interior has the responsibility for developing both conventional and reliable supplies on our public land. 40% of land mass of the united states our public land. 20 per cent rather 80% of the 30% or 20% of the land mass is operated directly by us and the balance is the force surface but we manage the energy production on those lands as well and we have management responsibilities for the 1.7 billion acres in the outer continental shelf. so in terms of energy production offshore, we'll and gas now

renewable in terms of energy production on shore, leal and gas but also renewable now, solar in the southwest, when the opportunities in that intermountain west and off the coast of the atlantic we are all about that and we are seeing the interplay between energy development and water on an up front and personal basis. secretary salazar and president obama ar as part of his team we are pushing hard for the new energy frontier in the united states. we traditionally have focused on the department of interior almost exclusively on conventional oil and gas development. one-third of domestic oil and gas supplies come from our land in the interior department. virtually none of our renewable energy comes from public land. we are pushing hard to open up new solar facilities in the southwest in particular. what are we bumping up against?

water. as you know the question of whether we will have water plants versus quote plants etc we are in the middle of the discussions and throwing to the mix not only the question of the water needs for the communities cannot writing to mentes cyclist adis, los angeles and phoenix but also the need of native species and affects on native americans etc. and to get a complex mix. finally an example and going to reference in terms of our department interest in water deals with a science side we are a major science agency, united states geological survey is part of department of interior and we threw the usgs have the longest and most comprehensive analysis of water supply in the united states. we've run thousands of stream engages in rivers and lakes and waterways throughout the country

in half for years. this water database is supplying the guts of our analysis of water impact due to climate change. likewise, terrific not water analytical capabilities to the usgs. many of your scientists know that. so we are a bit of a laboratory i would argue at the department of interior for this intersection between challenges of the future and our economic needs of the future, energy needs of the future etc and let me share with you a few observations in that regard as we look ahead and what we are focusing our attention on at the current time. i'm going to focus on three issues in particular. one is climate change impacts and what it's going to mean for the water supply. on that issue, we are finding --

i should say first of all the interior department tilt's west somewhat. many public lands or in the west. 85% of the state of nevada is an interior department managed. a very high percentages of the western states in general are interior department managed and the water projects are focused on the west primarily. our department had a heyday 100 years ago as efforts were made to attract americans to the west and make the great desert bloom. so, we are acutely interested in what is happening climate wise in the west and its dramatic. we are seeing average temperature is rising. that's increasing evaporation and potentially severity of drought. we are seeing a greater proportion of winter precipitation falling in the mountains as rain rather than

snow, reducing the winter snow pack which is the biggest reservoir that we rely on if he will. we see printer low temperatures rising in the snow pack melting earlier in the spring and collectively these transfer precipitation and temperature producing earlier making it harder to use the precipitation leader in the summer and affecting all of our assumptions about how we're going to deliver water to the millions of americans in the west and at the same time i should say western united states has accounted for 50% of the nation's population growth from 1990 to 2000. with the fastest growth in the united states being in the driest areas, arizona, nevada, southern california. so we are concerned about the impact of climate change. and i will tell you the example i gave earlier about the delta

system quite apart from the colorado river where we are seeing very severe drop likewise we are seeing it in central california and affecting our ability to deliver water through the delta. these are changing all of our assumptions about what will be available in the future and putting a premium on our ability to downscale global models to regional levels to be able to get better data and predictions about what we will have to deal with in the future in order to deal with the water supply needs for the city dwellers and farmers and yes, our fish. i will say very briefly that our response -- we are entering new territory here and as all of you know it's hard to know the way

forward. do you respond by eaglen to more infrastructure? do you respond by pushing for more conservation? do you respond by through other techniques? do you do all of the above? the answer is yes, yes, and yes. but one of the things we are pushing for the secretary recently put in order out on this is part morning with other decision makers in the region who were affected by water needs so that we work together, we get a common scientific data base and make collective decisions about how we are going to deal with water supply, it's a grand experiment, it's a place we have to go. i think it is a template for what we have to do globally in terms of getting stakeholders to have an interest in the science to them and options and making collective decisions. it will be a challenge for the democracy. the second future perspective we

have in addition to looking at climate change impacts is, and its related obviously, is we are trying to get out or handle on how to deal with the increased conflict between what your needs and the environment. we are acutely aware of it because of our corresponding obligations on the water supply side on the one hand and environmental protection on the other. and that letcher storch ship responsibility reflects itself but only in the administration of the endangered species act but at the interior department we also are stewards for the national parks, for the national wildlife refuge these which depend both of which depend largely on the water. our national wildlife refuge system was created along flyways. the prairie pothole region in the upper plains down to the coast of texas, the eastern

flyway. it's all without water and wildlife interactions, and as the water pattern changes and wildlife migration pattern changes alberta ready to maintain our environmental stewardship responsibilities are challenged. likewise the national parks, the everglades where we are spending hundreds of millions of dollars to restore natural water flow next thursday ken salazar will be in florida with every politician worth his or her salt in florida because there will be a lot of cameras as the announce and move on toward the release of water through the miami trail and restore the natural water flow of the everglades and that remarkable environment down

there. the everglades isn't very far above sea level and reconciling the restoration obligations with sea level rise is another challenge so we are trying to deal with these conflicts, and i would say the answer we are coming up with, and it's not new in fact it was pioneered by mr. bruce babbitt who spoke to you earlier perhaps, and the interior department of the clinton era is to look at ecosystems and look bulkeley at the need of the environment of water users alike and come up with brand solutions. that's the only way through this mess. rooted in science i should say, too. the frear area of the future we are looking at deals with the area of energy. the relationship between bader

and energy is a relationship that we are becoming more acutely aware of and i know you are and it is a subject of much of your conversation today. do you know that in dustin of california 20% of the energy budget of the state is used to move water? 20%. the engineering that we have done to move water where it is needed creates energy challenges as well. on the flip side there are opportunities many of which have not been mined as we move water to do small hydro, to generate energy, and folks are looking at that in a way we never have before because of the necessity of doing so and bringing solar energy and to move water and just throwing out the rule book and realizing we have an energy water interface far more significant than we realized. meanwhile of course i should say

we are interested in the issue because the department of interior is the second largest hydro power producer in the country. we've run some of the largest hydro power facilities in the country, hoover dam, many others, grand canyon dam, so we're interested in that interface and trying to figure out how on the one hand can we reduce the energy used to move water and only ever had taken advantage of moving water to produce energy. we are not going to be building new dams certainly not traditional one of the river dams but we do need to think creatively about how to take advantage of moving water. the final thing i will mention is in terms of how we are looking at the future, and i know this is what many of you are looking at. how do we deal with water scarcity, the reality that the combination of increased demand on the resources of increased

uncertainty associated with climate change, the growing recognition of the environment has water needs, too, all of those factors are leading to the recognition we can't use water like we have traditionally come certainly not in this country which is with impunity and without regard to water supply. on the assumption that will always be there. that is a reality is sinking in him in the u.s.. we have a ways to go but perhaps thanks to the reality of climate change and challenges from drought ranging from the southeast to the west there is a broad recognition of that and our response certainly has the administration working across the agencies with the environmental protection agency and army corps of engineers and other agencies that deal in well

water arena is to be thinking more broadly about how we can stretch our water supplies. that means a new emphasis on conservation. you will see this administration moving out on water conservation in a big way. it's overdue. it needs to happen. much more attention on water we usage and recycling, which is anathema to the traditional we call them what are buffaloes who disdain those kinds of programs. i will tell you though as a concrete example of our reprioritization along those lines in the president's stimulus package, the recovery act our bill has a billion dollars to spend on water issues in the west. we have spent -- we have dedicated more than 140 million

of that 1 billion on walter be used reclamation projects partnering with municipalities using treatment bring water systems etc.. we are committed to much more leadership on the water conservation side. so, i will close. i wanted to give you a flavor for the fact you are not alone in terms of looking ahead at the challenges presented by the water future. those of us in the obama administration are acutely aware of the importance of this issue. we are committed to tackling this in a meaningful way, and i hope we will have the opportunity to work together on any number of levels. thank you very much. [applause]

>> thank you very much, deputy secretary hayes. as we move into the panel part of the afternoon, we are going to introduce the panel team with a short video and after the video we will ask the panel to be seated so with that, the video please. >> we really need to start looking at how we have to make adjustments so that our water resources can actually contribute to the goal, which is having enough food, having health, a safe and secure home, desirable cities to live in. having water and that comes out of the tap. >> the issue is we need to be looking at water from a base in scale, and irrigation system scale right down to the field

scale. >> walter shipley water shipped the solutions are different and this is why it is much more complex to find solutions. >> to move toward what some durham the blue economy we need integrated planning on the basis of economic data. >> the answers to some of the problems are not overly expensive. >> an enormous amount we can do with existing technologies. there are things that have been known for a long time. a set of very small actions by many people in which the problems isn't cost. it is actually getting everybody to do it. >> i did the way forward needs to be a rational approach that recognizes we all have a role to play. >> the panel was still preparing the microphone. it will take another minute or so i'm told so we will sit here

in darkness. there's light until the panel was seated. bear with us it shouldn't take more than a minute or two. thank you. [inaudible conversations] [inaudible conversations]

>> it looks like they have now been mic'ed. >> let me start if i could by welcoming clive crook from the financial times who will be moderating the panel this afternoon. for those of you that don't know him he's the chief washington affairs commentator and also a member of the editorial board, senior editor of the atlantic and columnist and frequent contributor to the national journal. we are glad to could join today and we ask you to please introduce the plan panel. >> it's great to be here. i would spend time describing my credentials to moderate the discussion because that would be very brief set of remarks. but fortunately the other members of the panel are amply

supplied with credentials as i think we will agree. i would say a quick word of the introduction to them and then get the ball rolling. i think we are going to attempt to have a conversation not here on the panel, for perhaps 30 or 40 minutes, something of that kind and then there will be an opportunity for people from the audience, from you guys to make comments and ask questions. some moderator's from all the comments as opposed to questions. i don't. all comments as well as questions are welcome but with that let me introduce the members of the panel. moving from my left to right, john briscoe was the director of the border security initiative at harvard university. bruce babbitt is chairman of tebeau w. f., former interior secretary, former governor of arizona. heiner markoff is of deep water.

michael mack as the ceo of syngenta. one of the things on my mind when listening to the presentations was what is the answer to this question, why does this subject not get the attention and desserts? and it occurs to me that the main reason is possibly the extraordinary complexities of the issue and the fact of course that local considerations are paramount and when one comes to think about what should be done. this is not a global problem. all the difficulties addressing climate change poses technical and political. it looks straightforward compared to water security when you go through the material that we are listening to today. so what i would like to do in putting just a first question to the panel, and i would hope each of them could speak just two or three minutes to get the ball rolling on this, when you

encounter this material -- when you get a sense of the complexity of the problem what are your own priorities in thinking about it? what are the issues he would draw to the particularly draw to the attention of the public and getting negative focused on an issue which i think you will agree has been neglected? perhaps i could move along the panel and maybe john, as you could go first. >> thank you very much. if i could make a disclosure first i was part of the advisory team to the project and also an introduction just to say that i would like to complement the ifc. this is precisely the sort of public issue that the ifc with its relationship with private-sector makes enormous contribution to. for me a couple of things. first i think the fact base the team produced is terrific and this, as julia showed it is the start of a six part process that

can lead to transformation. the second observation i would make is the need as you said to have trojan 80. when we listen to the department of interior they said on something like 9,000 cubic meters of water per person in the western united states in storage. if you go to ethiopia the number is 40 so the situation with large infrastructure is a completely different issue in the developing world and that said i think there are two main issues the report. institutions matter a lot and i will come back to that. for me the great example, the most interesting example in the contemporary world is that of australia. telstra ligon has been hit by climate change already. you are now getting one third of the water that you got ten years ago. the amazing fact that is that in the agricultural heartland of australia, agricultural production and plant is about the same as it was when they had 100, now that they have 30. and that is because the

institutions which are robust institutions at the heart of this. but what we are seeing in places like australia is once you have exhausted that institutional frontier, technologies become absolutely key. and there i would highlight three areas. i think the area michael from the biotechnology as we saw eckert culture, this is hugely important. second, the whole area of treatment technologies again, a hugely important and furred is information technologies which are also transformed. the last point i would like to make is i think that the discussions on water in countries globally have historically been governments in recent years government with ngos and academia. the business community has looked as it is somebody else's problem. we will do at whiffing and the have to sort this out and i think what this report is a clarion call to the fact that business has to do the technology side and to engage in the public debate and i think that this has happened beautifully amongst the sponsors of this report on a global level

now moving to the next step of implementation and making this happen. i think it can happen at the national level, too. we had a discussion on the future of indiana and dubai and it was interesting to speak to the private sector colleagues on that initial reaction is it is a government responsibility and then you say are you going to be a will to do your business, is he going to able to raise your children that continues the way it is and the answer is no. therefore the progressive both developing technologies that becoming engaged in the public debate is for me with this report is all about. >> thank you. that was splendid. bruce? >> you're really asking a politician for two minutes? [laughter] >> i'm insisting on it no more than three. >> he spoke with complexity. i think this is really quite a simple issue. this report,